Ebere Nwoji

Global Insurance giant, Prudential Insurance  Group plc  has acquired 100 percent stake in Prudential Zenith Life Insurance Ltd (PZL) .

The group had since 2017 acquired 51 percent shares of the Nigerian Life underwriting firm owned by Zenith Bank plc.

Before now, PZL has been existing as bancassurance partnerships with Zenith Bank in Nigeria and Ghana. Zenith Bank is a leading bank headquartered in Nigeria, with a network of over 400 branches and approximately 29 million customers across the region.

Prudential originally purchased a 51 percent stake in Zenith Life Insurance Limited in Nigeria in 2017, which benefited from an existing bancassurance partnership with Zenith Bank. 

The group said consideration for this transaction would  be payable in cash and includes a performance-based element.

Commenting on the deal,  the Managing Director, Strategic Business Group, Prudential      Solmaz Altin, said “We are delighted to take full ownership of the business and have the opportunity to better serve the needs of our customers and create long-term value for our shareholders. Acquiring the remaining stake is consistent with our new strategy to build a sustainable multi-channel growth platform, through targeted investment in structural growth markets across Asia and Africa. We see substantial long-term opportunities in Nigeria and plan to build on our existing agents,bancassurance partnerships and direct distribution capabilities.”

Also speaking, CEO, Africa, Prudential  Emmanuel Aryee Mokobi, said the transaction increases the group’s  participation in an attractive market with significant growth potential.

He said, “Insurance penetration remains low in Nigeria (less than 0.2 percent of GDP) and there is a significant growth runway. Nigeria’s life insurance market is the fifth largest African market with a gross written premium of $770 million, and we have an established presence there.”